Akshu Full Project

7/27/2019 Akshu Full Project

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CUSTOMER PERCEPTION SERVICES

MLA ACADEMY OF HIGHER LEARNINGPage 1

CHAPTER -1

INTRODUCTION

FINANCE:

The word finance comes from the Latin word Finis. Finance is regarded as

the lifeblood of the business enterprises. This is because in the modern

money oriented economy finance is one of the basic foundations of all kinds

of economic activities. It provides access to all the sources being employed

in manufacturing and merchandising activities. It has been rightly termed

universal lubricant, which keeps enterprise dynamic.

It is defined as issuance of distribution and purchase of liability and equity

claims, issued for the purpose of generating revenue producing assets.

IMPORTANCE OF FINANCE

The finance functions are an essential and at the same time a very distinct

segment of the overall managerial function. It is indispensable in any

organization as it helps in:

Financial planning and successful promotion of an enterprises. Acquisition of funds as and when required at the minimum possible

cost.

Proper use and allocation of the funds. Taking sound financial decision. Increasing the wealth of the investor and the nation. Promotion and mobilizing individual and corporate saving

This unique of finance given it an elevated status, which it deserves in the

overall business functions. Hence efficient management of every business

enterprise is closely linked with efficiency of its finance. Finance is the

genesis of the entire business activity.


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FORMS OF FINANCE

The subject of all finance has been traditionally classified into two classes:

1) Public finance2) Private finance Public finance deals with the requirements and disbursements of

funds in the government institution like states, local self-government

and central governments.

Private finance is concerned with requirements, receipts anddisbursements of funds in case of an individual, a profit seeking

business organization and a non-profit organization.

FINANCIAL MANAGEMENT

Meaning

Financial management deals with planning and control of financial

operations to corporate enterprises. It is the specialized function directly

associated with the top management.

Definition

According to Joseph and Massie financial management is the operational

activity of a business that is responsible for obtaining and effectively

utilizing the funds necessary for efficient operation.

Financial management refers to all those managerial activities or efforts

which are concerned with ascertainment of the finance, short term as well as

long term needed by the firm, determination of the sources suitable under thegiven circumstances and collection of the funds in time, and control over the

utilization of funds.


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1. RETAIL BANKING

Service with a Smile : Todays finicky banking customers will settle for

nothing less. The customers has come to realize somewhat belatedly that he

is the king. The customers choice of one entity over another as his principalbank is determined by considerations of service quality rather than any other

factor. He wants competitive loan rates but at the same time also wants his

loan or Credit cards application processed in double quick time.

He insists that he be promptly informed of changes in deposit rates and

service charges and he bristles with customer rage, if his bank is slow redress

any grievance he may have. He cherishes the convenience of impersonal net

banking but during his occasional visit to the branch he also wants the

comfort of personalized human interactions and facilities that makes his

banking experience pleasurable in short he wants financial house that will

more just clear his cheque and updates his pass book.

He wants banks that cares and provides great services. So do banks meetsthese heightened expectations?. Is there a gap that exists between the

management perceptions and customer perception with reference to the

services offered in Retail Banking?.

1.1 What is Retail Banking

Retail Banking is, however, quite board in nature it refers to dealing ofcommercial banks with individual customers, both on liabilities and assets

sides of the balance sheet. Fixed, current or saving accounts on the liabilities

side, and mortgages loans (e.g. personal, housing, vehicle , and educational)

on the assets side, are the more important of the products offered by the

banks. Related ancillary services includes credit cards or depository services.

Today retail banking sector is characterized by three basic characteristics :-


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Multiple products (deposits, credit cards, insurance, investments andsecurities.

Multiple channels of distribution (branch, internet) and. Multiple customer groups (consumer, small business and corporate).

1.2 Retail banking in India:

Retail banking in India is not a new phenomenon. It has always been

prevalent in India in various forms. For the last few years it has become

synonymous with mainstream banking for many banks.

The typical products offered in the Indian retail banking segment are housing

loans, consumption loans for purchase of durables, vehicle loans, credit

cards and educational loans. The loans are marked under attractive brand

names of differentiate the products offered by different banks. As the report

on trend and progress of the India 2010-2011.

It has shown that the loan values of these retail lending typically range

between Rs.100 lakh. The loans are generally for duration of five to seven

years with housing loans granted for a longer duration of 15 years. Credit

card is another rapidly growing sub-segment of the product group. In recent

past retail lending has turned out to be a key profit driver for banks with

retail portfolio constituting 21.5% of total outstanding advances as on March2011. Theoverall impairment of the retail loan portfolio work out much less

then the gross NPA ratio for the entire loan portfolio. Within the retail

segment, the housing, loans had the least gross asset impairment. In fact,

retailing make ample business sense in the banking sector. While new

generation private sector banks have been able to create a niche in this

regards, the public sector banks have not lagged behind. Leveraging their


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vast branch network and outreach, public sector banks have aggressively

forayed to garner a larger slice of the retail pei. By international standards,

however, there is still much scope for retail banking in India. After all, retail

loans constitute less than seven percent of GDP in India.

Vis--vis about 35%for other Asian economics- South Korea (55%),

Taiwan(52%), Malaysia (33%) and Thailand (18%). As retail banking in

India is still growing form modest base, there is a likelihood that the growth

numbers seem to get some what exaggerated. One, thus, thus has to exercise

caution in interpreting the growth of retail banking in India.

1.3 Drivers of retail banking business in India

Some of the basic reasons which led to the retail banking growth are as

follows :-

First

economic prosperity and the consequent increasing power has given afillip to a consumer boom. During the 10 years after 1992 India s

economy grewat an average rate of 6.8% and continues to grow at

almost the same rate-not many countries in the world match this

performance

second changing consumer demographics indicate vast potential for growth in

consumption both qualitatively and quantitatively. India is one of the

countries having highest proportion (70%) of the population below 35

years of age (young population) and china mentioned Indian

demographic advantage as an important positive factor for india.


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Third

technological factors played a major role. Convenience in the form ofdebit cards, internet and phone-banking, anywhere and anytime

banking has attracted many new customers into the banking field.

Technological innovations relating to increasing use of credit / debit

cards, ATMs, direct debits and phone banking has contributed to the

growth of retail banking.

Fourth

the treasury income of the banks, which had strengthened the bottomlines of banks for the past few years, has been on the decline during

the last few years. In such a scenario, retail business provides a good

vehicle of profit maximization considering the fact that retails share

in impaired assets is far lower than the overall bank loans and

advances, retail loans have put comparatively less provisioning burden

on bank apart from diversifying income streams.

Fifth

decline in interest rates have also bottom lines of banks for the pastfew years, has been on the decline during the last contributed to the

growth of retail credit by generating by demand for such credit.

Opportunities and challenges of retail banking in India

Retail banking has immense opportunities in a growing economy like

India. As the growth story gets unfolded in India. Retail banking is going to

emerge major driver. How does the world view us? As already referred to

the BRIC report, talking India as an economic super power; A.T.Kearney, a

global management consulting firm, recently identified India as the second


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most attractive retails destination of 30 emergent markets. The raise of the

Indian middle class is an important contributory factor in this regard. The

percentage of middle to high income Indian households is expected to

continue rising. The younger population not only yields increasing

purchasing power, but as far as acquiring personal debt is concerned, they

are perhaps more comfortable than previous generations. Improving

consumer purchasing power, coupled with more liberal attitudes toward

personal debt, is contributing to Indias retail banking segment. Global

investors are attracted to India because of the growing number of well-

educated, English-speaking workers who are comfortable working in

information technology. Indias IT work force will be augmented by a

booming population of engineering students. Furthermore, Indias labor pool

also serves as an expanding customer base for retail banking products and

services. And network management challenges, whereby keeping these

complex distributed network and applications operating properly in support

of business objectives becomes essential. Specific challenges includeensuring that account transaction applications run efficiently between the

branch offices and data centers.

But how competitive are the players?

The entry of new generation private sector banks has changed the entirescenario, earlier the household savings went into banks and the banks then

lent out money to corporate. Now they need to sell banking. The retail

segment, which has earlier ignored, is now the most important of the lot,

with the banks jumping over one another to give out the loans. The consumer

has never been so lucky with so many banks offering so many products to

choose. With supply far exceeding demand it has it has been a race to the


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bottom, with the banks under cutting one another. A lot of foreign banks

have already burnt there fingers in the retailing game and have now decided

to get out of a few retail segments completely.

About the foreign giants?

In foreign banks have identified the wide opportunity but there are

certain systematic risk involved in operating in the retail market for them.

Reasons for the change over from corporate banking to retail banking:

The financial sector reforms undertaken by the government sincethe year 1991 have accelerated the process of disintermediation

which was encouraged blue chip corporate to access cheaper funds

to meet their working capital requirements directly from investors

in India and abroad through capital market instruments and external

commercial borrowing route thus by-passing banks. In the processmost of the banks have experienced substantial reduction in interest

spreads and drain on their profitability.

The introduction of stringent asset classification, incomerecognition and provisioning norms has resulted in growing of non

performing assets (NPAS) in corporate loans which has affected

the asset quality, profitability and capital adequacy of banksadversely. The risk involved incorporate loans are very high as

corporate have to keep all their eggs in one basket. The risk

involved in retail banking advances are comparatively less as well

diversified as loan amounts are relatively small ranging from Rs.

5000 to Rs. 100 lakh and repayable normally in short period of 3

years except housing loans (where repayment period is long up to


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15 years in some cases) and from fixed sources of income like

salaries.

retail banking clients are generally loyal and tend not to changefrom one bank to another very often.

The housing loans, which from the major chunk of retail lendingand where NPAs are the least, carry risk weight of just 50% for

capital adequacy purposes. This is likely to come down further as

new basel capital Acco or (basel II) norms are put in place from the

year 2006. This offere added incentive to banks for leanding to this

retail segment as against corporate lending where capital

consumption is higher.

The greater amount of consumerism in the country with up swing inincome levels of burgeoning middle class, which has propensity to

consume to raise there standard of their living, is enlarging the

retail markets. This market is growing 250% per year and boosting

the demand for credit from households. The potential is huge aspresent penetration level is just over 2% in the country. Given the

easy liquidity scenario in the country the growth retain this sector is

likely to go up many fold in the years come. This offers great

potential for banks to enlarge their loan books.

Impact of retail banking :

The impact of retail banking is that, the customers have become the

emperorsin all banking activities, both on the asset side and the liabilities

front. The sellers market has transformed into buyers market the customers

have multiple of choices before them now for cherry picking products and

services , which suites their life styles and tastes and financial requirements


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as well. Banks go to there customers more often than the customers go to

there banks.

Problems faced in retail banking

Retail banking has all its attendant risks. It is highlysensitive banks go to move countinously. It is easy to enter,

but difficult to get out. A systematic and a calculated

approach is the pre-requisite for success in the long run

Retail banking is being introduced with the concept ofserving customer with better and innovative products with

the latest technology and easy availability. It becomes so

popular and widely acceptable that more and more

customers had started to use it. Now it becomes a mass

product. Customer data base have tremendously increased

and it becomes difficult to manage them

Todays competitive market customer has more than oneoptions for his retail banking needs. Every bank is providing

more or less similar kind of products. so an unsatisfied

customer can easily switch over to another competitors

bank. So banks need to be very careful in handling thecustomers. they have to continually improve their service

standards

Retail baking is so wide accepted by the customers as wellas very aggressively promoted by the bankers that if the

bankers do not take adequate care in distributing and


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recovering advances, there are chances of increasing in

NPAS in coming feature. And that would be an alarming

situation.

Retail banking products portfolio

A. There are many products in retail banking like fixed deposit,

savings account, current account, recurring account, NRI account,

corporate salary account, free demat account, kids account , senior

citizen scheme, cheque facilities, overdraft facilities , free demand

draft facilities , locker facilities, cash credit facilities, etc. they are

listed and explained as follows :

1. Fixed deposits:

The deposits with the bank for a period, which is specified at thetime of making the deposit is known as fixed deposits. Such

deposits are also known as FD or term deposits. A fixed deposits is

repayable on the expiry of a specified period no. The rate of

interest and other terms and conditions on which the banks

accepted FD were regulated by the RBI, in section 21 and 35 A of

the banking regulation act 1949. Each bank has prescribed theirown rate of interest and has also permitted higher rates on deposits

above a specified amount. RBI has also permitted the banks to

formulate FD schemes specially meant for senior citizen with

higher interest than normal.


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2. Saving account:saving bank account is meant for the people who wish to save a

part of their current income to meet their future needs and they can

also earn in interest on their savings. The rate of intrest payable on

by the bank on deposits maintained in savings account is prescribed

by RBI.

3. Current account :A current account is and running account , which may be operated

upon any number of times during a working day. There is no

restriction on the number and the amount of withdrawals from a

current account . current account , suits the requirements of a big

businessmen, joint stock companies , institutions , public

authorities and public corporation etc.

4. Recurring deposits :A variant of the saving bank account is the recurring deposit or

cumulative deposit account introduced by banks in recent years.

Here, a depositor is required to deposit an amount chosen by him.

The rate of interest on the recurring deposit account is higher

than as compared to the interest on the saving account. Banksopen such accounts for compared to the interest on the saving

account. Banks open such accounts for periods ranging from 1 to

10 years. The recurring deposit account can be opened by

any number of persons, more than one person jointly or

severally, by a guardian in the name of a minor and even by a

minor


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5.NRI Account:

NRI accounts are maintained by banks in rupees as well as in

foreign currency. Four types of Rupee account can be open in

the names of NRI:

a. Non Resident Rupee Ordinary Account (NRO)

b. Non Resident External Account (NRE)

c. Non Resident ( Non Reportable Deposit Scheme ) ( NRNR)

d. Non Resident ( special)Rupee Account Scheme ( NRSR)

Apart from this, foreign currency account is the account in foreign

currency. The account can be op en no rma ll y in US Do ll ar ,

Pound Ster l ing, Euro. The accounts of NRIs are Indian

millennium deposit, Resident foreign currency, housing

finance scheme for NRI investment schemes.

6. Corporate Salary Account:

Corporate Salary account is a new product by certain private sector

banks, foreign banks and recent ly by some publ ic sector

banks a lso. Under this account sa la ry i s depos i ted inthe account of the employees by debiting the account of employer.

The only thing required is the account number of the employees and

the amount to be paid them as salary. In certain cases the minimum

balance required is zero. All other facil it ies available in

savings a/c is also available in corporate salary account.


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7. Demat Account:

Dematerialization is a process by which physical share

certificates / securities are taken back by the company or registrar and

destroyed ultimately. An equivalent number of shares are credited

electronically to customers depository account. Just like saving/current

account with a bank one can open a securities account with the depository

through a depository participant.

8. Kids Account ( Minor Account ) :Children are invited as customer by certain banks. Under this, Account is

opened in the name of kids by parents or guardians. The features of

kids account are free personalized cheque book which can be used as

a gift cheque , internet banking , investment services etc.

9. Senior Citizenship Scheme:

Senior citizens can open an account and on that account they can

get interest rate some what more than the normal rate of interest.

This is due to some social responsibilities of banks towards aged

persons whose earnings are mainly on the interest rate.

B. Loans and Advances:

The main business of the banking company is lending of funds to

the constituents, mainly traders, business and industrial enterprises. The

major portion of a banks funds is employed by way of loans and


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advances, which is the most profitable employment of its funds.

There are three main principles of bank lending that have been

followed by the commercial banks and they are safety , liquidity, and

profitability. Banks grant loans for different periods like short term, medium

term, long term and also for different purpose.

1. Personal Loans: This is one of the major loans provided by

the banks to the individuals. There the borrower can use

for his /her personal purpose. This may be re la ted to

his/her business purpose. The amount of loan is depended on the

income of the borrower and his/her capacity to repay the loan.

2. Housing Loans: NHB is the wholly own subsidiary of the RBI

which control and regulate whole industry as per the

guidance and informat ion. The purpose of loan i s

mainly for purchase, extension, renovation, and land development.

3. Education Loans: Loans are given for education in country as well

as abroad.

4. Vehicle Loans: Loans are given for purchase of scooter, auto-

rickshaw, car, bikes etc. Low interest rates, increasing incomelevels of people are the factors for growth in this sector. Even

for second hand car finance is available.

5. Professional Loans: Loans are given to doctor, C.A,

Architect, Engineer or Management Consultant. Here the loan

repayment is normally done in the form of equated monthly.


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6. Consumer Durable Loans: Under this, loans are given for

acquisition of T.V, Cell phones, A.C, Washing Machines, Fridge and

other items.

7 . Loans against Shares and Securit ies : Finance

against shares are given by banks for different uses. Now-a-

days finance against shares are given mostly in demat shares. A

margin of 50% is normally accepted by the bank on market

value. For these loans the documents required are normally DP

notes, letter of continuing security, pledge form, power of attorney.

This loan can be used for business or personal purpose.

Retail Banking Services

1. CREDIT CARDS: A credit card is an instrument, which providesimmediate credit facilities to its holder to avail a var ie ty of goods

and services a t the merchant out le ts . I t i s made of

p last ic and hence popularly called as Plastic Money. Such cards

are issued by bank to persons with minimum income ranging between

RS 50000 and RS 100000 per annum and are accepted by a variety of

business establishments which are notified by the card issuing bank.Some banks insist on the cardholder being their customers while

others do not. Few banks do not charge any fee for issuing

credit cards while others impose an initial enrollment fee and

annual fee also. If the amount is not paid within the t ime

durat ion the bank charges a f la t in terest of

2.5%.Leading Indian Banks such as : SBI, BOB, Canara


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Bank, ICICI, HDFC and a few foreign banks like CITIBANK,

Standard Chartered etc are the important issuers of credit card

in India.

2. DEBIT CARDS: It is a new product introduced in India by Citibank afew years ago in association with master card. A debit card facilities

purchases or payments by the card holder. It debits nationalized

largest commercial banks with effect from the midnight of July 19,

1969. Jayaprakash Narayan, a national leader of India, described the

step as a masterstroke of political sagacity. within two weeks of theissue of the ordinance the parliament passed the banking companies

(acquisition and transfer of undertaking) Bill, and it receiver the

precedential approval on 9 august, 1969. A second of nationalization

of 6 more commercial banks followed in 1980. The started reason for

the nationalization was to give the government more control of credit

delivery. With the second does of nationalization. The GOI controlledaround 91% of the banking business of India. Later on , in the year

1993, the government merged new bank of India with Punjab national

bank. It was the only merger between nationalized banks and resulted

in there deduction of the number of nationalized banks from 20 to 19.

After thus, until the 1990s, then nationalized banks grew at a pace of

around 4% , closer to the average growth rate of the Indian economy.The nationalized banks were credit by some, including home minister

p. Chidambaram to have helped the Indian economy with stand the

global financial crisis 2010-2011.


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Liberalization:

In the early 1990s Narsimha rao government embarked on a policy of

liberalization , licensing a small number of private banks . These

came to be known as new generation these included global trust bank .

this move, along with the rapid growth in the economy of India,

revitalized the banking sector in India, which has seen rapid growth

with strong contribution from all the three sectors of the bank namely,

government banks, private banks and foreign banks. The next stage

for Indian banking has been set up with the proposed relaxation in the

norms for foreign direct investment. Banker s, till this time, were used

to the 4-6-4 method (borrow at 4%; lend at all methods of working for

traditional banks. All this led to the retail boom in India. People not

just demanded more from their banks but also received more.

Currently, banking in India is generally fairly nature in terms of

supply, product range and reach- even though reach in rural India still

remains a challenge for the private sector and foreign banks. In termsof quality of assets and capital adequacy , Indian banks are consider to

have clean, strong and transparent balance sheets relative to other

banks in comparable economics in its region. The reserve bank of

India is an autonomous body , with the pressure from the government .

the started policy of the bank on the Indian rupee is to manage

volatility but without any fixed exchange rate and this has mostlyhas been true. With the growth in the Indian economy expected to be

strong for quite some time especially in its services sector- the

demand for banking services, especially retail banking , mortgage and

investment services are expected to be strong . one may also expect

M&As , takeovers and asset sales .


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CHAPTER - 2

RESEARCH DESIGN

STATEMENT OF THE PROBLEM.

The research problem selected for the purpose of this dissertation is A

STUDY ON CUSTOMER PER CEPTATION SERVICES PROVIDED

TOWARDS INDIAN BANK. This is bring about the scenario of banking

sectors in the recent development as how customers are comfortable in

dealing in facilities of bank. Banks are most useful for the people which

helps them in depositing, drawing, saving the money not only money but

also gold ornaments etc.

OBJECTIVES.

To know how the bank facilities are provided. To provide more information about locality of the bank branches. To ensure that they give loans with adequate documents. To develop the bank and good rapport with customers.

SCOPE OF THE STUDY.

The study is extended to know employees/personnel in Indian

bank. It also shows how staff in knowledgeable regarding question asked by

customer.

SAMPLING DESIGN.

The study has used Non- Probability sampling design. Non- probability

sampling involves deliberate selection of a particular unit of the population

for constituting a sample.


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DATA COLLECTION METHOD.

A.Primary data: The primary data was collected by means of a survey.Questionnaire was prepared and customers of the bank were approached

to fill up the questionnaire. The filled up information was later analyzed

to obtain the required information.

B.Secondary data: In order to have a proper understanding of the sector ofretail banking, an in depth study was done from the various books,

magazines, journals and articles written on the subject. Information was

taken from the internet related to industry, company, competitors, etc.

STATISTICAL TOOL.

80 percentage of persons have been used various statistical tool for

the analysis of data. Percentage analysis, and cross tabulation.

PLAN OF ANALYSIS.

The various statistical techniques are used for analysis such as graphs,

charts, tables, for support and inferences are drawn accordingly.

OVERVIEW OF CHAPTER SCHEME.

It includes chapter-1 INTRODUCTION

RESEARCH DESIGN

COMPANY PROFILE

ANALYSIS & INTERPRETATION

FINDINGS, SUGGESTION & CONCLUSION.


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LIMITATION OF STUDY.

From the sample may not reflect the universe. The data limitation of

study is time factor, due to time the detail study was made. Analysis is done

based on assumption, that information provided by respondents is accurate &

genuine


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CHAPTER3

COMPANY PROFILE

Vision

To emerge as the most preferred bank in the country in terms of

brand, values, principles with core competences in fostering customer

aspirations, to build high quality assets leveraging on the strong and

vibrant technology platform in pursuit of excellence and customer

delight and to become a major contributor to the stable economic

growth of the nation.

Mission:

To provide a secure, agile, dynamic and conducive banking

environment to customers with commitment to values and unshaken

confidence, deploying the best technology, standards, processes and

procedures where customer convenience is of significant importance and

to increase the stake holders value.

FUNCTIONS OF INDIAN BANK:

The deposits of rural and semi-urban total deposits and it also termloan deposits.

Financing short-term loans for seasonal agricultural operations and formarketing of agricultural products.

Providing cash credit loans to meet working capital requirement forprocessing and marketing of customer needs.


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Advancing medium-term loan for development of agriculturalinfrastructure such as lift-irrigation, dairy, poultry, plant at Oviedo and

small business etc That constitutes schematic leading.

Advancing working capital loans to state level, national level,international level and also public sector undertaking.

Supporting the primary agricultural credit societies under businessdevelopment plans.

To provide for remittances of funds by demand draft, mail transfer,ATM services and collection of cheques etc

PRESENT STATUS OF ORGANISATION

DIRECTORS REPORT;

The director say that they are very much pleasure to present their 41 annual

report of the bank and audited financial statement for the year 2010-2011.

Despite set back challenges that severely affected the Indian bank industry,

Indianbank ended the year 2010-2011 standing total proceeding after having

succeeded in strengthening the financial viability.

FINANCIAL PERFORMANCE:

The banks overall performance during financial yearNet profit for 2010-11crossed the Rs.1700 crore marks and was at Rs.1714.1

crore as compared to Rs.1555 crore for 2009-10, showing a growth of

10.2%.


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SOURCES OF FUND

THE BANKS MAIN SOURCES OF FUND FROM THE FOLLOWING:

Owned funds Deposits and Borrowings

Total net income;

During the year, total income of the Bank increased to Rs.10542.9 crore

with a strong growth in interest income to the tune of Rs.9361.0 crore or

21.4 per cent. Net interest income registered a rise to Rs.4036 crore (27.7

per cent).

Deposits;

Total Deposits grew by Rs.17, 576 crore to Rs.105, 804 crore, a growth of

19.9 per cent for the year 2010-11

Advances;

Gross Advances were at Rs.75, 726 crore, registering an increase of

Rs.13,068 crore (20.9 per cent) as on 31.3.2011.

Milestone:

1907: Established on 15 August

1932: Indian Bank opened a branch in Colombo. 1935: IB opened a branch in Jaffna. 1939: IB closed the Jaffna branch. 1940: IB opened a branch in Rangoon (Yangon). 1941: IB closed the Rangoon branch but opened branches in

Singapore (where future branch manager KB Pisharody (1915

1998) started his career in the same year), and in Kuala Lumpur, Ipoh,


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and Penang. The rapid advance of the Japanese Army forced IB to

close all its branches in Malaya and Singapore.

1942: IB closed the Colombo branch. Post-WWII: IB reopened its Malayan and Singapore branches. 1948: IB reopened its branch in Colombo. 1960s: IB acquired Mannargudi Bank (est. 1932) and Salem Bank

(est. 1925).

1969: The Government of India nationalized 14 top banks, includingIndian Bank.

1973: Indian Overseas Bank, Indian Bank and United CommercialBank established United Asian Bank Berhad in which IOB held

16.67% of the paid up capital, as a result of a new banking law in

Malaysia that prohibited foreign government banks from operating in

the country.

1978: IB became a technical adviser to P T Bank Rama in Indonesia,the result of the merger of P T Bank Masyarakat and P T BankRamayana.

1980: IB, Bank of Baroda, and Union Bank of India established IUBInternational Finance, a licensed deposit taker in Hong Kong. Each of

the three banks took an equal share in the joint venture.

1987: IB acquired Bank of Tanjore (Bank of Thanjavur) in TamilNadu in a rescue.

1998: Bank of Baroda bought out its partners in IUB Intl. Fin. in HongKong. Apparently this was a response to regulatory changes following

Hong Kongs reversion. IUB became Bank of Baroda (Hong Kong), a

restricted license bank.

2007: IB celebrated its centenary year.


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REWARDS:

Under the Chairmanship of Mr T M Bhasin, Indian Bank has received

following Awards in 2010-11 :-

Ranked first in profitability by the Financial Express and Ernst&Young Survey and the overall ranking as second amongst the Public

Sector Banks

SKOCH Award for the Self Help Group initiatives Best OUTLOOK MONEY Award for Best Bank under the

Educational Loan category

Amity Corporate Excellence Award for Best Customer Service CELENT Award for Benchmarking of Banks in India Best Banker Award for SHG Movement from the State Government

of Tamilnadu

BOARD OF DIECTORS

Chairman & Managing Director T M Bhasin

Director (Shareholder) Narendra Kumar Agrawal

Executive Director V Rama Gopal

Nominee (Govt) Shaktikanta Das

Director (Workman Employee) M Jayanath

Executive Director Rajeev Rishi

Nominee (RBI) N Krishna Mohan

Company Secretary A Ganesa Rathnam

Director (Shareholder) Sanjay Maken

Chintaman Mahadeo Dixit

Director(Part-time Nonofficial) Amarjit Chopra

Butchi Rami Reddy


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Organization structure:

Board of directors

Chairman and managing directors

Executive directors

General Manager

Deputy General Manager

Assistant general manager

Chief Manager

Senior manager

Manager

Assistant branch

manager

AttendersOther staff people


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SERVICES PROVIDED BY INDAIAN BANK:

Financial short term loan Financing of medium term loan Financing IBAGRI CARD KISSAN GOLD card KISSAN BUKE card MICRO CERDIT card Kcc plus Jana shree Loans:

Home loanBanking loanVehicle loanMortgage loanEducation loan Installment loansJewel shopOther loans: Jala nidhi scheme:- existing hut, house, office, the loan

amount maximum of Rs.100000 repayment of loan 2 yrs and

interest is 9%

Doctor plus scheme:- individual and partnership firms, thestart nursing home, hospital, x-ray, labs etc,. The maximum

amount is Rs. 5000000 maximum 10 yrs and interest is 9%.

Personal bankingFixed depositCurrent depositsCurrent savings bank deposits


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CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

Table showing the age group of respondents.

Table no 1

AGE GROUPS RESPONDENTS PERCENTAGE

10 20 8 10%

20-30 36 45%

30-40 12 15%

40-50 24 30%

Total 80 100%

Analysis :

from the above table it is clear that 10% of respondents are of age from 10

to 20, 45% respondents are under age of 20 to 30, 15% are of 30 to 40 age,

and 30% are of age group 40 to 50.


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Chart showing age group of respondent age group:

Chart 1

Interpretation:

From the above graph it is clear that highest respondents are from the age

group of 20 to 30 with 45%, and least of respondents are of age group 10 to

20, that is children.

0%

10%

20%30%

40%

50%

60%

70%

80%

90%

100%

10 20 20-30 30-40 40-50 Total

10%

45%

15%

30%

100%%

o

f

a

g

e

g

r

o

u

p

s

age groups


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Table showing the gender of respondents:

Table 2

GENDER RESPONDENTS PERCENTAGE

Male 48 60%

Female 32 40%

Total 80 100%

Analysis:

From the above table, its clear that most of the respondents are male.


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Chart showing gender of respondents:

Chart 2

Interpretation:

From the above graph it is clear that most of the respondents are male and

40% are female.

0%

20%

40%

60%

80%

100%

Male Female Total

60% 40% 100%

%

o

f

r

e

s

p

o

n

d

e

n

t

s

gender


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Table showing the occupation of respondents.

Table 3

OCCUPATION RESPONDENTS PERCENTAGE

Employees 56 70%

Students 16 20%

House wife 8 10%

Total 80 100%

Analysis :

From the above table shows that 70% of respondents are employees,

20% respondents are students and 10% of respondents are house wife.


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Chart showing percentage of occupation respondents.

Chart 3

Interpretation :

From the above table shows that 70% of respondents are employees,

20% respondents are students and 10% of respondents are house wife.

0%

10%

20%30%

40%

50%

60%

70%

80%

90%

100%

Employees Students House wife Total

70%

20%10%

100%

%

o

f

r

e

s

p

o

n

d

e

n

t

s

occupation


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Table showing the courtesy level of employees.

Table 4

COURTESY LEVEL

OF EMPLOYEES RESPONDENTS PERCENTAGE

Good 60 75%

Very good 12 15%

Excellent 4 5%

Poor 4 5%

Total 80 100%

Analysis :

From the above table we can understand that 75% of courtesy level of

employees is good, 15% of employees are very good, 5% of

employees are excellent and 5% of employees are poor.


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Chart showing the courtesy level of respondents:

Chart 4

Interpretation:

From the above chart it is clear that courtesy level of the employees

are good as per majority of the respondents that is 75%.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

good very

good excellent

poor total75% 15% 5% 5%

100%

%

o

f

r

e

s

p

o

n

d

e

n

ts

courtesy level


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Table showing respondents showing knowledge:

Table 5

EMPLOYEES SOLVING

YOUR QUESTIONS RESPONDENTS PERCENTAGE

Good 28 35%

Very good 32 40%

Excellent 12 15%

Poor 8 10%

Total 80 100%

Analysis:

The above table shows that employees solving the question to respondents

are 35% is good, 40% are very good, 15% are excellent, 10% are poor.


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Chart showing respondents knowledge:

Chart 5

Interpretation:

From the above graph it is clear that 32% respondents feel that bank staffs

are knowledgeable.

28

32

12

8

80

0 20 40 60 80 100

Good

Very good

Excellent

Poor

Total

% of respondents

s

o

l

v

i

n

g

e

m

p

l

o

y

e

e

s

q

u

e

s

t

i

o

n

s


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Table showing how fast the personnel are attending to responds:

Table 6

EMPLOYEES SOLVING

YOUR QUESTIONS RESPONDENTS PERCENTAGE

Good 28 35%

Very good 32 40%

Excellent 12 15%

Poor 8 10%

Total 80 100%

Analysis:

From the above table , its clear 35% people responding are good. 40% of

people are very good, 15% of people are excellent and 10% of people are

poor.


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Chart showing how fast they respond:

Chart 6

Interpretation:

From the above table, its clear 35% people responding are good. 40% of

people are very good, 15% of people are excellent and 10% of people are

poor.

0% 20% 40% 60% 80% 100%

Good

Very good

Excellent

Poor

Total

35%

40%

15%

10%

100%

percentage

r

e

s

p

o

n

d

i

n

g

a

b

i

l

i

ty


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Table showing the problems are being faced by respondents with

regards to facilitates offered in the bank.

Table 7

FREQUENT

PROBLEM BY BANK RESPONDENTS PERCENTAGE

ATM 44 55%

Demand draft 4 5%

Cheque 8 10%

Transaction time 24 30%

Total 80 100%

Analysis:

From the above table 55% respondents frequent problems are facing in

ATM, 5% comes demand draft, 10% during cheque and 30% of them

during transaction time.


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Chart showing the problems are being faced with regards to

facilities in bank.

Chart 7

Interpretation:

From the above graph most of respondents are facing problems in ATMs.

0% 20% 40% 60% 80% 100%

ATM

Demand draft

Cheque

Transaction time

Total

55%

5%

10%

30%

100%


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Table showing how many are comfortable in opening the accounts.

Table 8

COMFORTABLE IN

BANK ACCOUNTS RESPONDENTS PERCENTAGE

Savings account 76 95%

Joint account 4 5%

Current account 0 0%

Total 80 100%

Analysis:

From the above table, 95% are comfortable opening the saving accounts, 5%

comes under in joint account and there is nil in current accounts.


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Chart showing how comfortable are opening the accounts:

Chart 8

Interpretation:

From the above chart most of the respondents are satisfied in savings bank

account. Respondents are not interested in current account.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Savings

account

Joint account Current

account

Total

95%

5%0%

100%

%

o

f

r

e

s

p

o

n

d

e

n

t

s

accounts


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Table showing how facilities in branch/bank facility are comfortable.

Table 9

Analysis:From the above table, 60% of seating arrangements are good, 5% comes

under AC, 10% comes under rest room and 25% comes under drinking

water.

COMFORT FACILITIES

OFFERED BY BANK RESPONDENTS PERCENTAGE

Seating arrangements 48 60%

AC 4 5%

Rest room 8 10%

Drinking water 20 25%

Total 80 100%


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Chart showing facilities are good in branches.

Chart 9

Interpretation:

From the above chart, 60% of respondents are comfortable with seating

arrangements, 25% of respondents are satisfied with drinking water and few

of them are satisfied with AC and rest room.

0%10%

20%30%40%50%60%70%80%90%

100%

60%5% 10% 25%

100%

%

o

f

r

e

p

o

n

d

e

n

t

s

fecilities


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Table showing the quality of ATM services provided.

Table 10

Analysis:

From the above table, 45% of ATM services are good and, 20% comes under

very good, 25% comes under excellent and 10% comes under poor.

QUALITY OF ATM

SERVICES RESPONDENTS PERCENTAGE

Good 36 45%

Very good 16 20%

Excellent 20 25%

Poor 8 10%

Total 80 100%


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Chart showing in quality of ATM is provided:

Chart 10

Interpretation:

From the above chart, 45% of respondents think quality of ATM is good

and accessible. And some of them think it is excellent.

0% 20% 40% 60% 80% 100%

Good

Very good

Excellent

Poor

Total

45%

20%

25%

10%

100%

percentage

q

u

a

l

i

t

y

o

f

A

T

M


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Table showing debit card services are provided.

Table 11

Analysis:

From the above table, 15% of debit card is good, 25% comes under very

good, 55% comes under excellent and 10% comes under poor.

QUALITY OF DEBIT

CARD SERVICES RESPONDENTS PERCENTAGE

Good 12 15%

Very good 20 25%

Excellent 44 55%

Poor 4 10%

Total 80 100%


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Chart showing how useful debit cards are provided.

Chart 11

Interpretation:

From the above chart, respondents think that debit cards are very useful and

easy. And 25% think debit cards are very good.

Good, 15%Very good, 25%

Excellent, 55%

Poor, 10%

Total, 100%


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Table showing credit card services are provided.

Table 12

Analysis:

From above table, 25% are good, 25% comes under very good, 15% comes

under excellent and 35% comes under poor.

QUALITY OF CREDIT

CARD SERVICES RESPONDENTS PERCENTAGE

Good 20 25%

Very good 20 25%

Excellent 12 15%

Poor 28 35%

Total 80 100%


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Chart showing how useful in credit cards:

Chart 12

Interpretation:

From the above chart, respondents think that credit cards are not so useful

than debit cards. Because credit cards incur more of interest.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Good Very good Excellent Poor Total

25% 25% 15%

35%

100%

%

o

f

r

e

s

p

o

n

d

e

n

ts

usefullness


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Table showing how fast they disbursing the loans.

Table 13

Analysis:

From the above table, 35% of them are good, 25% comes under very good,

there is nil in excellent and maturity is 40% of them are poor.

RATING IN DISBURSING

OF LOANS RESPONDENTS PERCENTAGE

Good 28 35%

Very good 20 25%

Excellent 0 0%

Poor 32 40%

Total 80 100%


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Chart showing how fast the loans are processing to the responds.

Chart 13

Interpretation:

From the above chart, respondents are not satisfied with fast loans. 40% are

not satisfied with loans disbursing.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


35% 25%

0%

40%

100%

%

of

r

e

s

p

o

n

d

e

n

t

s

loans processing to responds


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Table showing the interest rates are being offered :

Table 14

Analysis:

From the above table, maturity 55% of them are satisfied, 15% comes under

very good, 10% comes under excellent and 20% comes under poor.

INTEREST RATES

OFFERED BY BANK RESPONDENTS PERCENTAGE

Good 44 55%

Very good 12 15%

Excellent 8 10%

Poor 16 20%

Total 80 100%


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Chart showing interest rates being offered:

Chart 14

Interpretation:

From the above chart majority of the respondents satisfied interest rates

0%

10%

20%

30%40%

50%

60%

70%

80%

90%

100%



57/73



Table showing uses of net banking facility are provided.

Table 15

Analysis:

From the above table 85% of people are using net banking, only 15% of

people are not using it.

NET BANKING FACILITY

USED BY CUSTOMERS RESPONDENTS PERCENTAGE

Yes 32 85%

No 12 15%

Total 80 100%


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Chart showing how many of them is using the net banking facilities.

Chart 15

Interpretation:

From the above graph, most of them use net banking facilities given by

banks. Except 15% of respondents all other respondents use net banking

facilities.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes No Total

85%

15%

100%


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Table showing the quality of net banking facility is provided in banks.

Table 16

Analysis:

From the above table 65% of respondents think that net banking facilities

are good, 15% comes under very good, 10% comes under excellent and

15% comes under poor.

QUALITY OF NET

BANKING FACILITY

USED BY CUSTOMERS RESPONDENTS PERCENTAGE

Good 52 65%

Very good 12 15%

Excellent 4 10%

Poor 12 15%

Total 80 100%


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Chart showing net banking facility is offered.

Chart-16

Interpretation:

From the above graph, most of them like net banking facilities given by

banks. Except 15% of respondents all other respondents like net banking

facilities.

Good, 65%

Very good,

15%

Excellent, 10%Poor, 15%

Total, 100%


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Table is showing more than one account.

Table 17

Analysis:

From the above table, 45% of people are opened more than one account,

55% of people are not opened.

CUSTOMERS

HOLDING MORE

THAN ONE ACCOUNT RESPONDENTS PERCENTAGE

Yes 36 45%

No 44 55%

Total 80 100%


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Chart showing more than one account:

Chart 17

Interpretation:

From the above chart, 55% of respondents have only one account and 45%

of respondents have more than one account.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes No Total

45%

55%

100%


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Table showing banking sector is developed.

Table 18

Analysis:

From the above table, 35% of people are saying the bank has developed, 45

% of people are saying that still bank is developing and 15% of people aresaying that under developed.

RATING IN

DEVELOPMENT OF

BANKS RESPONDENTS PERCENTAGE

Developed 28 35%

Developing 36 45%

Under-developed 12 15%

Total 80 100%


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Chart showing bank sector is developed or under progress.

Chart 18

Interpretation:

From the above chart, it shows that the bank is developing..45% respondents

feel the bank is developing.

0%

20%

40%

60%

80%

100%

35%

45%

15%

100%%

o

f

r

e

s

p

o

n

d

en

t

s

development


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FINDINGS

45% of the respondents fall under the age category of 20-30years.

60% of the respondents are males

40% are females.

70% are employees., 20% are students and 8% are house wife.Therefore 70% are educated.

40% are not interested in the loan.

75% of the respondents have rated the bank good with regard to thecourtesy level ofthe banks personnel/ staff.

40%of the respondents have rated the bank good with regardto the bank staffs knowledge in answering/ solving the customers

queries.

40%of the respondents have ra ted the bank good wi threg ar d to th e fa s tn es s , th e personnel show in responding/

attending to the customer.

55% of the respondents have ra ted the bank good wi thregard to the easiness the customers found to open an account

with the bank.


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55% of the respondents have rated the bank, average, with regard tothe promptness in keeping the customers informed of deposit rates/

service charges; whereas the management rates it to be very good

which reveals a gap existing in this service between the two

perspectives.

60% of the respondents have rated the bank very good withregard to the comfort facilities it offers.

45% of the respondents have rated the bank average with regard to thequality of the ATM services provided by the bank; whereas

management rates it to be very good which again reveals a gap

existing in between the two perspectives.

35% out of the few who have availed loan from any of the bank haverated the banks fastness in processing and disbursing loans to be

good.

15% of the respondents have rated the bank average with regard to theinterest rate currently being offered. The management has rated this as

good which shows a slight gap existing and also that the interest rateoffered by the bank is not much satisfactory to the customers.


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10% of the respondents who use the internet and mobile facilities haverated banks this facility to be average. The management has rated this

as very good which shows a slight gap existing and also the

dissatisfaction of the customers regarding this service.

85%of the respondents use the mobile and internet banking facility ofthe bank

Interest rate offered by a bank is rated as the first attribute which acustomer considers to choose a bank before going for a bank loan.


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SUGGESTIONS

50%of the respondents felt that the interest rates on loan werehigh and hence the interest rates may be reduced to attract more

customers.

Only 40% of the respondents being female, the bank can look forwardto design few more schemes to attract the female customers.

Since the respondents are unaware of the services provided throughinternet(15%) banking; initiatives, such as posting a list of

services that are rendered to the customers inside the bank

premises, demo of the services in the bank websi te ; can be

done to make the customers aware, and use the

serv ices provided through ATM, internet and mobile banking of the

bank.


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CONCLUSION:

Customers always look for more facilities and better interest rates

when compared to other banks they have account with, so, through

innovation and competitive pricing strategy the bank can foster

business relationship with its customers. The gap analyzed can be

minimized by better technology, customer service and also by creating

awareness about the various services; thereby increasing the

customers base. So as to retain the existing customers and to build up

customers loyalty, customer relationship management should be given

more importance.


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BIBLOGRAPHY.

Reference Author & publications

Law and practice of banking Appannaiah reddy, vijayendra.

Recent trends in finance Internet, G-mail

Referred various projects of previous year.


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Questionnaire on

Customer perception services provided towards Indian bank.

Please tick ( ) on the scale of 1-4 the number you feel is the most

appropriate (1 being the least and 5 being the highest. Where 4=Excellent;

3=Very good ; 2=Good; ; 1=poor).

1.Name-2. age-3. sex- male( ) female( )4. occupation-5. On a scale of 1-4 how do you rate the courtesy levels of your banks

staff ?

A.Poor ( ) B. Good ( )c. Very good ( ) D .Excellent ( )

6. Rate as to how well knowledgeable you feel the bank staff is inanswering/solving your questions ?

A.Poor ( ) B. Good ( )c. very good ( ) D. Excellent ( )

7. Rate the aspect as to how fast the personnel are in

responding/attending to you ?

A. Poor ( ) B. Good ( )C. Very good ( ) D. Excellent ( )


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8. What are the frequent problems are being faced by you with regards

to facilities offered

in bank ?

A. ATM ( ) B. Demand draft ( )C. Cheque ( ) D. Transaction time ( )

9. How comfortable are you in opening the following accounts ?

A. Saving account ( ) B. Joint account ( )

C. Current account ( )

10.How do you rate your bank/branch facility in terms of the comfortfacilities it offers with reference to ?

A.Seating Arrangements ( ) B. Rest room ( )C. Ac ( ) D. Drinking water ( )

11.How do you rate the quality of ATM services provided by the bank ?A.Poor ( ) B. Good ( )C . Very good ( ) D. Excellent ( )

12.How do you rate the Debit card services offered by your bank ?A.

Poor ( ) B. Good ( )

C. Very good ( ) D. Excellent ( )

13.How do you rate the Credit card services offered by your bank ?A.Poor ( ) B. Good ( )C. Very good ( ) D. Excellent ( )


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14.Rate your bank as to how fast you feel it is in processing anddisbursing loans ?

A.Poor ( ) B. Good ( )C. Very good ( ) D. Excellent ( )

15.Rate the interest rates currently being offered ?A.Poor ( ) B. Good ( )

C. very good ( ) D. Excellent ( )

16.Do you use the phone/net banking facility offered by your bank ?A.Yes ( ) B. No ( )

17. Rate the quality of the phone/net banking facility offered by your bank?

A. Poor ( ) B. Good ( )C. Very good ( ) D. Excellent ( )

18. Do you hold more than one account?

A. Yes ( ) B. No ( )

19. Banking sector facilitated should it be developed?

A. Developed ( ) B. Under developed ( )

C. Developing ( )

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